Sandvik's 'Standard & Poor's' rating is A-2 for short-term borrowing and BBB+ for long-term borrowing. 'K-1' Nordic scale, (rating valid since May 2011).
Quotes from the statement that was released 24 May 2011 by the rating agency:
- Sweden-based industrial machinery manufacturer Sandvik AB's operating profit and cash generation have improved significantly recently thanks to a sharp rebound in its end markets and substantial cost cutting.
- We believe that a continuation of positive unit volume sales will help the company to generate strong cash flow thus supporting its credit metrics.
- We are raising our long-term corporate credit ratings on Sandvik to 'BBB+' from 'BBB' and affirming the 'A-2' short-term rating.
- The stable outlook reflects our expectations of continued recovery in Sandvik's end-markets as well as the company's strong cash flow generation and sustained focus on debt reduction.